Electrolux Posts Loss For Q3, But Sales Rise

Electrolux AB (ELUXY.PK), a Swedish home appliance major, said in a third-quarter interim report that it has recorded a loss for the period, primarily driven by weak business performance in North American markets, that reported a substantial loss.

For the third quarter, the Stockholm-headquartered firm posted a loss of SEK 605 million or SEK 2.23 per share, compared with a profit of SEK 1.143 billion or SEK 3.98 per share of last year.

Operating loss amounted to SEK 385 million, compared with earnings of SEK 1.639 billion, posted for same period of 2021. Operating income includes a negative non-recurring item of SEK 350 million, related to the exit from the Russian market, impacting business in European market.

Weaker market conditions and supply chain hurdles resulted in a significantly elevated cost mainly in North American business segment that reported a loss of SEK 1.2 billion.

Electrolux's third-quarter net sales, however, rose to SEK 35.244 billion from last year's SEK 30.929 billion.

Looking ahead, the company said: "Consumer sentiment is also next year assessed to be negatively impacted by inflation and higher interest rates. Hence, market demand in both Europe and North America for the full-year of 2023 is expected to further deteriorate, i.e. be negative year-over-year."

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